Corporate Governance: the Challenges Facing Implementation of Gender Diversity in the Composition of Boards of State Corporations in Kenya

Abstract

The board of directors is an integral element of corporate governance. Its role is to guide, plan, manage, oversee and steer the strategic thinking of the corporation. The composition of the board influences the effective governance, decision making, reputation and performance of a corporation. The board is required to have a diversity of gender, skills, age, education and experience as a good corporate governance practice. More specifically, however, lack of gender diversity has plagued the boards of State Corporations in Kenya. The genesis of this is the persistence of gender inequality over many years. Although Kenya has put in place enabling legislation such as the Constitution, State Corporations Act and Mwongozo, the Code of Governance for State Corporations which provides for guidelines for good corporate governance and best practices, nevertheless women are still underrepresented in the boards of SCs. Full implementation of gender diversity in the board room will only pan out if measures are taken to overhaul and streamline the board appointment exercise. Further, government commitment, a review of laws such as the State Corporations Act to be in line with the Constitution and Mwongozo promulgated as a statute.